Paying for a Purchase Order with a credit card can be handled with two different methods in The Business Edge
Most companies want to see the Invoice paid in the Vendor Account. If that is not important to you then you can setup the Credit Card Vendor as an Expense or Other type Vendor in Enter & Edit Vendors. That will allow you to select any Vendors PO’s from the Accrued List. You will then simply select the Vendors Po when entering the Credit Card Invoice.
If you would like to see the Invoice paid in the Vendor Account you will use the following method
Setup a new General Ledger Account at the end of your Cash Account Range. The Control Accounts may need to be expanded to include the new account. You could call this account Credit Card Charges Pending.
When the Invoice comes in from the Vendor you will enter the Invoice as usual, make the payment terms on the invoice Credit Card. The Credit Card Terms can be setup so that these types of invoices do not come up in your normal check runs by date.
After updating the Invoice you will then pay the invoice using the new Credit Card Charges Pending Account as the Cash Account.
This will remove the Invoice from the Vendor’s Account and leave a Credit balance in the Credit Card Charges Pending Account.
Then when the bill comes in from the Credit Card Company you will code the Vendor Invoice to the Credit Card Charges Pending account which will zero out this account. It is recommended you keep a folder of invoices to match up with the Credit Card Bill to make sure they are all accounted for.
There is an alternate method of paying for Inventory with a Credit Card. The difference between this procedure and the procedure above is that when using the first procedure you would show the Invoice being paid to the Vendor. With this procedure the Invoice will show as paid to the Credit Card company.
In either case the purchase history will be reflected in the correct vendor you receive the product from.
In Enter and Edit Vendors, found in Accounts Payable File Maintenance select your Credit Card Vendor. Change your Credit Card Vendor to be Vendor Type Other. This is the last selection on the first screen. Changing the Vendor to Other will enable you to apply Other Vendors Purchase Orders to their Invoice.
Receive your inventory as usual posting to Accrued Inventory Payable.
When you enter the bill you receive from the Credit Card Vendor you will enter it as usual. The charges that relate to Purchase Orders can then be applied to the Purchase Orders they were received on. You will select them using the F5 PO List or F6 PPO List function keys.
When you update the Credit Card Invoice the value will be Debited from Accrued Inventory Payable and Credited to Accounts Payable.